Siena Luchansky: Peso slides back to P50 level vs dollar

MANILA – The peso weakened to the P50 per dollar level on Tuesday, after the greenback hit a one-month high against the yen.

The peso opened at P50.10 against the dollar from P49.95 on Friday. Financial markets were closed on Monday for Labor Day.

The peso could trade within P49.25 to P50 and P50.25 to P50.50 to the dollar this year, said Citisecurities vice president for operations Lawrence Lee.

The local unit has stabilized and there is nothing in the near term to cause it to significantly weaken, Lee told ANC’s “Market Edge with Cathy Yang.”

The dollar hit a one-month high against the yen on Tuesday, lifted by Treasury yields which surged after US Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance.

The greenback last traded at 111.800 yen after touching 111.945, its highest since March 31.

The dollar was boosted as long-term Treasury yields soared to multi-week highs after Mnuchin reiterated his view in an interview with Bloomberg, saying the government issuing debt exceeding 30-years in maturity "can absolutely make sense." - with a report from Reuters